How/where can I claim business startup expenses on my tax return?
Hey everyone. I started my small business in 2024 as a sole proprietorship. It's still pretty modest (for now!) with minimal overhead, startup costs, and profit. I've been trying to understand if I can write off the money I spent to get my business going. From what I'm reading, expenses that help you start up and maintain your business are deductible as business expenses, right? This would mean I can include these on my tax report and potentially lower my tax bill or increase my refund. Some of the things I paid for include: - Monthly subscription fees for logo design software - Business cards (about $65) - Design and printing for promotional flyers - Custom t-shirts with my logo (ordered 25 for around $340) - DBA filing fee ($85) - And several other smaller expenses All of these were directly related to launching my business. So am I right in thinking I can get a tax break by including these expenses when filing? If so, I'm having trouble finding where to enter these in TurboTax's self-service platform. I've been clicking around for an hour and can't seem to find the right section. Any help would be super appreciated! Thanks.
20 comments


Leila Haddad
You're absolutely right that you can deduct those startup expenses! As a sole proprietor, your business income and expenses get reported on Schedule C (Profit or Loss from Business) which attaches to your personal tax return. In TurboTax, you need to tell it you have business income. Look for a section about "self-employment" or "business income" - it might be under "Federal" and then "Wages & Income." Once you indicate you have business income, TurboTax should walk you through entering your business expenses in different categories. For your specific expenses: business cards and flyers would go under "Advertising," the DBA fee under "Legal and professional services," and the t-shirts might go under "Advertising" if they're for promotion or "Supplies" if they're for you to wear while working. The logo design subscription would likely go under "Other expenses" with a description. Keep all your receipts! The IRS loves documentation if they ever have questions.
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Emma Johnson
•This is really helpful, but I'm confused about one thing - is there a limit to how much I can deduct in the first year? I thought I read somewhere that startup costs have to be amortized or something? Also, what about equipment purchases like a laptop or printer?
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Leila Haddad
•For startup costs, you can deduct up to $5,000 immediately in your first year of business. Anything over that amount needs to be amortized (spread out) over 15 years. But it sounds like you're well under that $5,000 threshold based on what you've described, so you should be able to deduct everything right away. For equipment purchases like laptops or printers, those are considered capital expenses and can either be depreciated over several years OR you might qualify for Section 179 deduction which lets you deduct the full purchase price in the year you bought it (up to certain limits). TurboTax should walk you through this when you enter those types of expenses.
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Ravi Patel
After struggling with this exact situation last year, I found this amazing tool called taxr.ai (https://taxr.ai) that literally saved me hours of frustration. I was in the same boat - had a bunch of business expenses and couldn't figure out where to enter them in TurboTax. What I love about taxr.ai is it analyzes your receipts and tells you exactly which category each expense belongs to for tax purposes. It even explained why my logo design work was "Advertising" but my accounting software was "Office expenses." Best part is it creates a nice organized report you can use while entering everything into TurboTax.
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Astrid Bergström
•Does it work with other tax software too? I'm using H&R Block online and having similar issues finding where to put my business expenses.
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PixelPrincess
•I'm a bit skeptical about these types of tools. How does it know the difference between personal and business expenses? I sometimes use the same Amazon account for both and it's a mess trying to sort through.
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Ravi Patel
•Yes, it absolutely works with any tax software! I've actually heard from friends who use H&R Block that it works perfectly for them too. The report it generates is software-agnostic - it just tells you which tax category each expense belongs to so you can enter it correctly no matter what platform you're using. The personal vs. business separation is actually one of the best features. You can tag expenses as you upload them, but it also has a smart detection system that flags potential personal expenses based on merchant type and purchase patterns. You can always override it, but I found it caught several things I might have accidentally tried to deduct that weren't truly business-related. Saved me from potential audit headaches!
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Astrid Bergström
Wanted to follow up about taxr.ai - I decided to try it after seeing it mentioned here and WOW what a difference! Uploaded all my receipts from the past year and within minutes I had everything categorized correctly. It even flagged some expenses I didn't realize were deductible (like part of my cell phone bill since I use it for business calls). The Schedule C worksheet it created made entering everything into H&R Block super simple. No more guessing which category things belong in. Definitely using this every year from now on!
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Omar Farouk
For anyone who needs to actually talk to someone at the IRS about business deductions (which I did last year when I was confused about vehicle expenses), I highly recommend Claimyr (https://claimyr.com). I spent DAYS trying to get through to the IRS on my own - either busy signals or being on hold for hours only to get disconnected. Claimyr got me connected to an actual IRS agent in about 15 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent walked me through exactly how to handle my business mileage deduction and confirmed I was doing everything correctly with my other business expenses.
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Chloe Martin
•How does this actually work? Does it just dial for you or something? I'm confused how any service could get through the IRS phone lines when millions of people can't.
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PixelPrincess
•This sounds like a scam to be honest. Nobody can magically get through to the IRS faster than anyone else. They probably just keep you on hold the same amount of time and charge you for it.
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Omar Farouk
•It basically uses an automated system that continuously redials and navigates the IRS phone tree until it gets a spot in the queue, then it calls you and connects you. It's not magic - it's just automation doing what would be incredibly tedious manually. The reason it works is that most people give up after 30-45 minutes on hold, so they lose their spot in line. Claimyr never gives up. I was definitely skeptical too, but I was desperate after trying for days to get through on my own. Was genuinely surprised when my phone rang and there was an actual IRS agent ready to talk to me!
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PixelPrincess
I need to eat my words about Claimyr. After my skeptical comment, I was still struggling to get answers about my business deductions, so I tried it as a last resort. Honestly didn't expect much but figured it was worth a shot. It actually worked exactly as advertised. Got a call back in about 20 minutes with an IRS agent on the line who answered all my questions about categorizing my business startup costs. The agent confirmed that I could deduct my initial inventory purchase immediately rather than capitalizing it (since I'm below the threshold). Saved me hours of research and uncertainty. Sometimes it's nice to be wrong!
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Diego Fernández
Quick tip I learned from my small business: take photos of all your receipts with your phone immediately after purchase and organize them by month. Makes tax time so much easier. I use a folder system on Google Drive with categories like "Advertising," "Office Supplies," etc. Then when you're ready to do your taxes, everything's already sorted!
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Eduardo Silva
•This is a super helpful idea! Do you use any specific app for capturing the receipts, or just the regular camera app? I've been shoving paper receipts in a folder and I can already tell that's going to be a nightmare next year.
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Diego Fernández
•I just use my regular camera app - nothing fancy! The key is being consistent about it. I take the picture right when I get the receipt, then once a week I spend about 10 minutes moving photos from my camera roll to the right folders. Some people like receipt scanning apps, but I found this simple system works fine for my small business. If your business grows bigger, you might want something more sophisticated like QuickBooks that can automatically categorize expenses, but for now, the photo method should work great!
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Anastasia Kuznetsov
Make sure you're tracking your income too! The IRS matches 1099s reported to them against what you report on your Schedule C. I learned this the hard way last year when I forgot to include a small 1099-NEC from a client and got a lovely letter from the IRS a few months later.
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Sean Fitzgerald
•This! Also remember not all clients are required to send 1099s (like if you earned less than $600 from them), but you still need to report ALL income regardless of whether you received a form.
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Zara Khan
Don't forget you can also deduct a portion of your home expenses if you use part of your home regularly and exclusively for business. Look up "home office deduction" in TurboTax. It's based on the percentage of your home used for business. Totally legit deduction that many new business owners miss!
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Dmitry Petrov
Great question! I went through this exact same situation when I started my consulting business last year. You're absolutely on the right track - all those startup expenses you listed are definitely deductible as business expenses on Schedule C. A few quick tips for TurboTax: When you get to the "Federal" section, look for "Business Income and Expenses" or "Self-Employment." Once you tell TurboTax you have business income, it'll create a Schedule C for you and walk you through different expense categories. Your business cards and flyers go under "Advertising," the DBA fee goes under "Legal and Professional Services," and the logo software subscription would be "Other Business Expenses." One thing to keep in mind - since these are startup costs, make sure you're clear about when your business actually "began" (when you started actively trying to make money vs. just planning). The IRS has specific rules about startup costs vs. ongoing business expenses, but based on what you've described, it sounds like you're well within the limits. Keep those receipts organized! I learned that lesson the hard way. Good luck with your business!
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